Why We Never Lease Vehicles

My husband and I had two cars—one was a 2004 with 239,000 miles, and the other was a 2013 with 107,000 miles. Both have been paid off for years, which is our strategy—buy new, reliable cars and keep them until they die. However, we recently purchased a new 2022 vehicle, and I’m amazed at how technology has improved since I bought my new car in 2004. I love the backup camera and the blind spot detection. Driving a new car for the first time in 18 years, I could understand why people lease vehicles—they get the most recent models with the latest technology. However, despite that perk, the disadvantages of leasing keep us committed to our current car-buying strategy.

Why We Never Lease Vehicles

I have a friend who only leases cars—she never buys. She loves having the latest technology and having a nice-looking vehicle to drive when she meets clients. For her, leasing makes sense, and she wouldn’t do it any other way. However, for my husband and I, leasing has enough disadvantages that we choose to always buy new.

You’re essentially renting a car when you lease it. The car isn’t yours.

Penalty If You’re Over Mileage Limit

When you lease a car, you agree not to go over a certain number of miles yearly. Depending on the contract you sign, that may be 10,000, 12,000, or 15,000 miles per year. If you exceed that number of miles, you will be charged an additional 30 to 50 cents per mile. That amount adds up quickly!

We prefer to have the flexibility of driving our car where we need to go when we need to without fussing over exact mileage. Sure, some years we drive less than 10,000 miles, but other years we drive more.

Penalty for Damages

A leasing company gives you some allowance for everyday wear and tear, but if you have dings and dents in the vehicle, you’re responsible for fixing them. If not, the lease company can assess you a fee to fix them.

Nothing to Show for Your Payments

One of the most significant disadvantages of leasing is that you have nothing to show for your years of payments. After a specific time, usually two or three years, you return your vehicle to the leasing company.

When you buy a vehicle, the vehicle is yours after you pay off the car loan. Our 18.5-year-old vehicle? We paid it off in four and a half years, and then we enjoyed it payment-free for 14 years. Because we bought a reliable car, our repair and maintenance costs were reasonable.

Final Thoughts

The advantages of leasing a vehicle are getting a new car with the latest technology and not having to worry about repairs. However, the disadvantages of leasing a vehicle include mileage limits, fees for dents or damage to the car, and having nothing to show for your years of payments when the lease ends. Those disadvantages are significant enough that we will never lease a vehicle. Instead, we’ll continue with our current strategy. Since I just bought a new vehicle, I may not be in the car market again until 2035 or 2040.

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